The replacement of conventional generation sources by DER creates the need to carefully manage the reactive power maintaining the power system safe operation. The principal trend is to increase the DER volume connected to the distribution network in the coming years. Therefore, the microgrid represents an alternative to offer reactive power management due to excellent controllability features embedded in the DER, which enable effective interaction between the microgrid and the distribution network. This paper proposes a microgrid−iterative reactive power management approach of power-electronic converter based renewable technologies for day-ahead operation. It is designed to be a centralised control based on local measurements, which provides the optimal reactive power dispatch and minimise the total energy losses inside the microgrid and maintain the voltage profile within operational limits. The proposed optimal-centralised control is contrasted against seven local reactive power controls using a techno-economic approach considering the steady−state voltage profile, the energy losses, and the reactive power costs as performance metrics. Three different reactive power pricing are proposed. The numerical results demonstrate the optimal microgrid−interactive reactive power management is the most suitable techno-economic reactive power control for the day−ahead operation.